Funds raised from IFC green bonds are set aside in a separate account for investing exclusively in renewable energy, energy efficiency, and other climate-related projects in developing countries. Through IFC green bonds, investors can directly support climate change-related projects in the developing world.

"The U.S.-dollar market is an integral part of our strategy to support the development of the private sector," says Jingdong Hua, IFC Vice President and Treasurer. "Green bond issues in the U.S. market have been rare, compared to Europe and Asia. IFC green bonds are an alternative investment opportunity for this market, offering both development impact and a safe investment vehicle of a top triple-A issuer."

Some of the investors are BlackRock, TIAA-CREF, California State Teachers' Retirement System (CalSTRS) and United Nations Joint Staff Pension Fund.